Why the advertising market for job agencies is booming
A new analysis by Research Tools has revealed that advertising volume in the job placement market has increased by 270 percent over the past five years. Job boards, in particular, have ramped up their spending.
The advertising volume in the job placement sector reached a record high of EUR 336 million in the period from September 2023 to August 2024 - a significant increase compared to EUR 125 million five years ago. At the same time, an increasing concentration of advertising activities can be observed, as the average number of active advertisers per month has increased at a much slower rate and has even declined in the last three years. In the last year of analysis, an average of 172 companies actively advertised at least once a month and the three brands with the strongest advertising - Indeed, Jobblitz and Stepstone - contributed just under 46 percent of total expenditure.
Driven by job boards
Advertising growth was driven primarily by general job boards, whose expenditure has risen from 77 to 248 million euros over the past five years. In contrast to the industry as a whole, these reached their highest level two years ago, but still account for by far the largest share of expenditure at 74%. They are followed by specialized job boards and publishers with 14 and nine percent respectively. Recruitment companies made their first appearance in the last year of analysis with a four percent share of expenditure. Temporary employment agencies and recruitment consultancies, on the other hand, remain virtually inactive in the advertising market.
The proportion of media used has also changed significantly. With a share of 60%, the internet has established itself as the dominant channel, while traditional media such as TV and newspapers have become significantly less important. TV advertising now only accounts for a quarter of expenditure and newspapers are at a new low of 11%. The top brands largely rely on a digital focus: six of the ten leading providers use the internet exclusively for their campaigns. However, Indeed, Jobware and Stepstone also have a strong focus on TV, while the latter also uses out-of-home advertising.
